HMC Capital extends gains as Morgan Stanley upgrades price target
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More news: Morgan Stanley upgraded its price target on HMC Capital after the investment manager HMC Capital announced its $1.93 billion acquisition of data centre owner Global Switch Australia.
Morgan Stanley raised its price target on HMC from $8.80 to $9.10, reflecting the company's momentum in new verticals, beyond malls, credit, hospitals and other segments.
Its analysts said the deal will boost assets under management by $2 billion, up 25% compared to June 2024, and potentially generation between $20 million and $30 million in fee income, as well as ongoing management fees.
HMC shares were up 6.9% to $9.85 by 11:30am AEDT.
What they said: "Assuming HMC is successful in launching its proposed listed (DigiCo) and unlisted (HDIF) data centre funds, today's Global Switch transaction will ultimately be considered a positive," Morgan Stanley analysts said on Thursday.
HMC Capital shares climb on $300m equity raising
More news: Shares in HMC Capital advanced at market open after the investment manager said it had completed a $300 million equity raising to support the $1.93 billion acquisition of data centre owner Global Switch Australia.
HMC shares were up 3.8% to $9.56 by 10:50am AEDT, having more than doubled in value over the last 12 months.
HMC Capital completes $300m raise for data centre outlay
The news: Investment manager HMC Capital has completed its $300 million institutional placement, announced on Thursday, to underwrite the $1.93 billion acquisition of data centre owner Global Switch Australia.
The numbers: HMC, which last closed at $9.21 per share on the ASX, issued 34 million new shares at a price of $8.75 per share.
The context: HMC said the placement attracted strong demand from existing institutional shareholders and new institutional investors.
The proceeds from the placement will be used in conjunction with other funding sources to underwrite the recently announced acquisition of Global Switch Australia, which owns two data centres in central Sydney.
HMC shares are expected to resume trading on the ASX today, with normal trading of the new shares under the placement to occur on 30 October.
The source: ASX announcement
